Corporate Junk #16
We have an outstanding payment of $12k which we've billed last July. That was eight months ago. My accounts staff has been chasing for months. Month after month, the client's accounts department told us that our invoice had been submitted for approval. Their payment approval is done at the end of every month and only once every month.
For 3 cycles, our invoice has been rejected. This really frustrated me. My staff called their accounts to find out the reason for rejection and she directed us to the purchasing department who bought our products. We called the purchasing staff who had made the order from us. She told us she has checked with her superior and claim that the fault lies with the accounts department. For the sales side, she claimed that they have already approved the payment.
Frustrated, we called the accounts department and she told us to send them the invoice again and she'll try to obtain approval. From the address she gave to us, we noticed that it was a different operating address from the client and deduced that the client outsourced their accounts to an accounting firm.
A few days later, I called the accounts company and talked to the lady who was responsible for the payment of invoices. I chatted with her and asked her if she was from a different company as our client. She confirmed my suspicion and she has no authorithy in regards to the approval of payements. I continued to asked if there were other companies facing similar problems like ours. She hesitated but told me we were not the only company having the same difficulty. I actually began to sympathise her. I asked her wouldn't she be in the receiving end from the various companies who are chasing payments. She admitted that she gets scolded and shouted at many times and she said we were the only company who had not scolded her and had been patient and nice to her. I wondered if the client would delay payments to the "Big" companies. In fact, the client don't delay and payments are made promptly to the "Big" companies, she shared with me. This really made me boil.
I asked her if there is any thing we can do to ensure the collection of payments. She whispered and told me in a soft tone (as she didn't want her boss to overhear the conversation) that all we need to do is get a lawyer to send them a letter of demand and payment will be made promptly. She told me she shared this information with us because we have been nice to her.
I thank her and wished her luck (she has a tough job) before putting down the phone. Thank goodness we have been nice and we are able to obtain a "tip" on how to get our payment.
Why are there companies like these? Didn't we all start small? Why bully the companies that are perceived to be smaller in size? Why make us incur unnecessary expenses for engaging a lawyer to send a letter?
The legal letter of demand has been made. We shall see if payment will be made.






